Strange, I received in the form of cheque.

1) Yes, but not across is the same situation. Stareit has little debt, as good as none.
Yes, interest rate if high, it will affect the cost of financing but I don't think interest rate will go high enough though. The most BNM and central banks around the world won't hike rate too much as economy is still rather fragile.
Most probably we are looking for around 50 basic point high aka 0.5% the most in the coming future like 2-3 years down the road.
While if economy turn really good, and force rate into higher due to inflation, it just means economy is good, by then rental market should be good as well, while existing reit property valuation will become higher.
Yup, mostly under fixed rate until refinancing.

The borrowing is capped on 50% of its NAV, so they can't over-geared like overseas reit.

2. Yes. Office space will be competitative and under-pressured in the coming future, but it still depends on the quality of of properties as well. It doesn't mean office can't be rented out if the location and building is strategy and good. A drop of 10-20% rental or income, still yield is way above FD rate offering.

3. Yes, ordinary stocks offer better than reit. Reit upside is somehow got a cap, while ordinary stock is unlimited.
But reit is more a fixed income instrument as compared to ordinary stocks.
While reit has one advantage, is only 10% witholding tax, while ordinary stock if under single tier 25% tax.

Actually reit is different class of asset as compared to ordinary stock.
It is in between bond and stock.
As reit is not actually doing business, it is more like you bought a property, rent it out.

Atrium is industrial warehouse, not office space.

Arreit under quarterly distribution already

Me also, receive today by cheque.

There is a Q statement sent, a A4 plastic envelop, while cheque is sent separately, received on the same day today.

May be just a minor delay in between.

Then bank in after 3 weeks time loh.
Probably tomorrow arrived in your mail box.

Happy holiday then.

Ok, happy working then...

It is about escalating property valuation across aka properties bubble.
Properties price keep on going on, but rental is not.
So rental yield is squeezed an going down across.

I recent come across, million+ condo, only can rent about 3-5K per months with fully furnished, still people rush to buy, might as well park the money in FD, easier.

You need some properties market slump so that can get high yield properties.

I reckon Capitaland bought Queensbay for future only, not now (as well as Sg financing is cheaper), as Queensbay is located between the 2 bridge, once the second bridge completed, the said location valuation may going up further.
Also from foreigner pov, Malaysia property is damn cheap for them.

This post has been edited by cherroy: Dec 24 2010, 10:11 AM

Its financial year ended June one, so Dec is the half year result, so probably they will announce it during end of Jan, or early Feb, by then they are expected to distribute the dividend around end of Feb.

Most are under half year basic, while some are on quarterly basic.

If stock market goes up and economy is good, reit will follow the overall trend as well, although the pace of up surely much lesser than ordinary stock, it still a upside bias for reit, following the overall market as well as better economy means property sector is better.

As I had posted many times, main risk of reit
1. Refinancing difficult, which force high gearing need to pare down at fire-sale. Which happened during 2008 financial crisis time.
2. Unable to get tenants
3. Property location, management quality which affect (2)

It is very similar you bought a property and rent it out.

I agree partly on Mnet has said, reit price shouldn't be too far away from NAV. But if the dividend yield is high enough, it can have some premium.
As the high dividend can offset the premium pay for the NAV in the long run, while NAV may go up to offset your paid premium, as when economy good mean higher property valuation.

Still what dictate the reit price movement is mainly on yield side.

As it is little point to buy a reit or property at a discount, but cannot get tenant, difficult getting tenant, which lead to poor yield or little yield.
It is as same buying a property at huge discount, but little people want to rent from you. This kind property is classified as liability already.
Owning asset is about making money out of it.

Office space rental market is expected to be flat and under some pressure as more new supply come into market this year and next year.
So location and quality of office space matter a lot to see through this potential challenging period.

Full year expect yield is around 6.x% or 6.x cents.

Reit is not doing business, but rent out property its own only. So there is not such thing of "expand its market" like business.
The growth is come from either rental revision become higher, better utilisation of its mall, to rent out more, or expand its properties portfolio by acquisition.

This has nothing to do with Sunreit, but Sunway parent company.

Sunreit's properties portfolio
Sunway Pyramid Shopping Mall,
Sunway Carnival Shopping Mall,
SunCity Ipoh Hypermarket,
Sunway Resort Hotel and Spa,
Pyramid Tower Hotel,
Sunway Hotel Seberang Jaya and office properties.

Even injected into it, you must look at the price or valuation at time of injection.
If injected the properties at high valuation and resulted yield is not attractive, lower than currently, then it make little point to existing reit holders.

Just like CMMT rejected Queensbay to be injected into it, if not mistaken.

Invest in reit is nothing more than collect rental, never a business to start with.
It is more like bond, instead of ordinary business.
Reit nature is different, if really look for growth, go directly into equity and its parent company share.

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Added on January 17, 2011, 12:21 amIf I am Sunreit holder, I am concern the price paid and yield of it.
It is not solely more properties must be good.
You want quality properties, and good rental yield properties.

This post has been edited by cherroy: Jan 17 2011, 12:21 AM

First time, seeing disposal instead acquisition.

If not mistaken, bought 10.3 mil about 4-5 years ago.

No, it doesn't belonged to Sunreit, until SUnreit buying from the parent company.
Just like CMMT, on Gurney plaza.
Extension wing is not belonged to CMMT, until CMMT acquired it.

Revenue increased from the new wing but with either more shares being issued or use borrowing to fund the acquisition.

There is no such thing of theorectically in business world.
and most importantly, it never come free.
Do not expect new wing being built, then revenue goes up and rental income goes up, without acquire it first. It is not like that.

Bias or not doesn't matter, but understanding of it must be right. Any new development, new project doesn't belonged to reit, until acquisition being made.

Reit is not a property developers nor a construction company.
Although new regulation did flexible some rules on it, but rather limited, which my personally view is a good regulation.
No point to start a reit sector, but still has the exposure as same with ordinary property company.

Reit is owning a property and rent out only. Nothing else.

Axis reit total DPU for 4Q is 4.30 + 0.95 cents = 5.25 cents

Stareit give 3.286 cents. and 3.1 cents is tax exempted.

3.x cents is not its actual earning.
Its EPS only 1.x cents for the Q ended 31/12

And with new properties injection is scheduled only completed around 2Q 2011, the period from 1Q to 2Q of 2011, its EPS won't be too much, around 2.x cents is expected only, as newly injected properties only will contribute after the paper work of the injection/acquisition completed.

With 6.89 cents full year EPS is projected after acquisition, at 0.88, seem an ok yield with around 8%.
0.88-0.03 (instant div getting) = 0.85

6.89/0.85 = 8.1% gross, net will be around 7.3%.

So if one is ok with long term FD at 7.3%, this is an ok return.

PS: I might be bias, as I bought again recently.

The real effect will come in around second half 2011. But be prepare for some dismay DPU for the 1st half 2011.

I am ok for 7.3% for 15 years, if it can consistently deliver.
(15 years lease for those newly injected properties)

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Added on January 22, 2011, 11:06 am

I love February.

NAV of Qcap now is 1.27.

One disappointment of reit come from UOAreit, thinking to dispose, and change to Stareit or Qcap.
Don't quite like the report, as well as office space may not doing good in coming future.

This post has been edited by cherroy: Jan 22 2011, 11:12 AM